Limited capability for work and work-related activity and redundancy payments

ADIE2805

Hi,
I currently claim LCWRA and this is paid through me and my partners UC. My partner received a redundancy payment last month from one of her part time jobs which we knew would reduce this months UC award. However, this months award is really low, in fact it's less than my usual LCWRA monthly payment. 
What I would like to know, does earnings, although not mine, affect LCWRA. 
Thanks.

calcotti

UC is one award made up of several elements but they combine to one maximum amount for you both. You cannot treat the different bits separately. Nor can you separate them out as yours and your partner's. Earnings reduce the UC payable so could reduce the amount payable to nil. You could therefore end up with an amount payable which is less than the LCWRA element. It all depends on your maximum amount and the amount of the earnings.

An actual redundancy payment should be ignored as income ad treated as capital but payment of final earnings, accrued holiday pay, pay in lieu of notice etc it will be treated as earnings.